Air India’s capital assets to fly to a holding company
The Central Board of Direct Taxes (CBDT) notified the transfer of Air India’s capital assets to a holding company and offered tax relief to further sweeten the national carrier’s privatisation process. This came a day after it allowed the carry forward of losses for public sector companies undergoing strategic disinvestment, a move that will help privatisation of Air India.
As per the government’s plan to make the state-owned airline attractive to potential buyers, its capital assets are being transferred to Air India Asset Holding Co. Ltd (AIAHL), a special purpose vehicle (SPV) created for holding half the airline’s loans, four of its subsidiaries and non-core assets.
